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Jeremy Siegel: Why the Stock Market Slip Is Not a Slide
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Jeremy Siegel: Why the Stock Market Slip Is Not a Slide

Knowledge at Wharton·@HashtagPLUS·about 1 month ago
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Wharton finance professor Jeremy Siegel recommends that long-term investors not panic at the stock market’s recent deep dips – down some 3% in recent weeks before regaining some ground — and he continued with his forecast from January for equities to be either flat or up by as much as 10% for all of 2018. “I would not be surprised if Dow is up between 5% and 10% for 2018, but next year … I think it could be zero or up by 5%.” Siegel also said that if there was a positive resolution of the trade issues underway with China , “we could easily have a 10%, 15% pop in the market.” Speaking on the  Knowledge at Wharton radio show on SiriusXM , Siegel said that the key driver for the change in market sentiment recently is the reaction to the Fed’s interest rate increases. When returns outside of equity markets increase, those alternative investments become more attractive and equities relatively less so. The news of strong 2018 earnings “is priced in the market. The fear of those interest rates was not.…

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